Petroleum Act 1998

Part 1Preliminary matters

Petroleum Act1998No. 96 of 1998

Version No. 024

Petroleum Act1998

No. 96 of 1998

Version incorporating amendments as at16 March 2017

table of provisions

SectionPage

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Part 1Preliminary matters1

1Purpose1

2Commencement1

3Objectives1

4General definitions2

5Reference provisions7

6Meaning of petroleum8

7Meaning of petroleum exploration9

8Meaning of petroleum production9

9Act binds the Crown9

10Relationship of this Act to certain other Acts10

Part 2General matters11

11Application of this Act11

12Minister may exempt land from the application of this Act11

13Petroleum is the property of the Crown11

14Crown retains Crown land petroleum rights11

15Offence to explore for petroleum unless authorised12

16Offence to produce petroleum unless authorised12

16AOffence to carry out hydraulic fracturing12

17Petroleum becomes the property of the person extracting it13

17AMoratorium on petroleum exploration and petroleum production13

Part 3Exploration permits15

Division 1Rights conferred by permit15

18Rights conferred by permit15

Division 2Process for granting permits15

19Minister may invite tender applications for exploration permits15

20Application for permits15

20AGrant of exploration permit16

20BChief factors to be considered when there is only one application16

21Chief factors to be considered in deciding between competing offers16

22Notice to be given to applicants17

23Minister may make new grant if former grant refused17

24Procedure if initial invitation does not result in the granting of a permit17

25Permit area for exploration permits18

26Term of permit18

27Key objects of work programs18

Division 3Renewals19

28Renewal of permit19

29Application for renewal19

30Other factors to be considered in renewing permits20

31Permit not to be renewed if key objects not achieved21

32Renewed permit area to be reduced21

33Key objects of work programs22

34Variation of work programs for renewed permits22

Division 4Ministerial directions if petroleum discovered22

35Minister may give directions if petroleum discovered22

Part 4Retention leases24

36Purpose of a retention lease24

37Rights conferred by lease24

38Right to apply for lease24

39Details to be supplied with application25

40Factors determining grant of application25

41Restrictions on area to which lease applies26

42Term of lease26

43Procedure if lease not to be granted27

44Minister may require review of commercial viability27

45Minister may give directions if extraction viable28

Part 5Production licences29

Division 1Rights conferred by licence29

46Rights conferred by licence29

Division 2Issue of licences to holders of permits or leases29

47Right to apply for licence29

48Details to be supplied with application29

49Factors determining grant of application29

Division 3Grant of licences by tender30

50Minister may invite tender applications30

51Applications31

52Procedure for deciding between competing bids32

53Notice to be given to applicants32

54Refund of deposits32

55Minister may make new grant if former grant refused32

56Extension of time in which to make licence payment33

57Minister must not issue licence unless cash bid paid33

Division 4General provisions33

58Restrictions on area to which licence applies33

59Term of licence34

Division 5Directions concerning the rate of extraction or recovery of petroleum34

60Direction if petroleum not being extracted/recovered to the Minister's satisfaction34

61Form of direction34

62Licence holder must comply with directions35

Division 6Petroleum production development plan35

63Petroleum production development plan35

64Development plan to be lodged before production can start35

65Development plan must be adhered to35

66Minister may require variation of development plan36

67Minister may permit variation of development plan36

Division 7Underground storage of petroleum36

68Storage development plan36

69Storage development plan to be lodged before operations can start36

70Storage development plan must be adhered to37

71Minister may require variation of storage development plan37

72Minister may permit variation of development plan37

Division 8Underground storage of petroleum by third party37

73Application of this Division37

74Application to excise reservoir from a licence area37

75Minister must seek comments from licence holder38

76Restrictions on ability of Minister to grant application38

77Minister may refer application to advisory panel38

78Procedure if application granted39

Division 9Unit development40

79Unit development40

80Consultation concerning unit development must take place if part of pool interstate41

81Minister may amend licence for unit development41

Division 10Gathering lines41

82Meaning of gathering line41

83Minister may exempt gathering line from Pipelines Act42

Part 6Special access authorisations43

84Special access authorisation43

85Application for authorisation43

86General criteria the Minister must consider44

87Criteria that apply to permit, lease and licence areas44

88Exception to section 8745

89Minister may vary area to which authorisation applies46

90Authorisation does not give exclusive rights46

91Term of authorisation46

92Extension of term of authorisation47

93Permit, lease or licence holder not liable for actions of authorisation holder47

94Authorisation holder must give data to the Minister47

95Authorisation holder must give data to permit, lease or licence holder48

Part 6ASpecial drilling authorisations49

95ASpecial drilling authorisation49

95BApplication for special drilling authorisation50

95CGeneral criteria the Minister must consider50

95DCriteria that apply to permit, lease and licence areas51

95EException to section 95D51

95FMinister may vary area to which authorisation applies52

95GAuthorisation does not give exclusive rights52

95HTerm of authorisation53

95IExisting permit, lease or licence holder not liable for actions of authorisation holder53

95JAuthorisation holder must give data to the Minister53

95KAuthorisation holder must give data to permit, lease or licence holder54

Part 7Provisions applying to authorities generally55

Division 1Applications55

96Application for authorities55

97Work programs55

98Applications are not transferable56

99Existing permits and leases continue until renewal applications etc. decided56

Division 2Conditions57

100Conditions that may apply to authorities57

101Statutory condition of authority58

101BFurther statutory condition of authorityagreements under Traditional Owner Settlement Act 201058

102Minister may vary conditions unilaterally58

103Minister may vary conditions by consent59

104Variation of conditions on renewal, consolidation or transfer60

105Suspension of conditions60

106Term of authority may be extended if condition suspended61

Division 3Transfers of authorities61

107Transfers61

107ATransfers in relation to special drilling authorisations62

108Matters Minister must consider in assessing transfer application62

109Execution of transfer document insufficient to create interest63

110Partial transfers of permits and licences63

Division 4Surrender or cancellation of authorities64

111Surrender of authority64

112Partial surrender of authority65

113Cancellation of authority66

113ASpecial drilling authorisation surrendered, suspended or cancelled if primary authorisation surrendered, suspended or cancelled67

113BSpecial drilling authorisation expires or is terminated if primary authorisation expires or is terminated68

114Additional grounds for the cancellation or partial cancellation of production licence68

115Procedure to be followed before authority cancelled69

116Minister may give directions if authority expires or is surrendered or cancelled70

Division 5Planning matters71

117Definition of planning scheme71

118Exploration under authority overrides planning schemes71

119Production operations also override planning schemes72

120Alternative approvals73

121Amendments to planning schemes to facilitate exploration and production74

Division 6Miscellaneous matters75

122Minister must publish certain details if authority granted75

123Variation of an authority76

124Consolidation of adjoining authorities76

125Excision of area does not affect authority77

126Expedited procedure for replacement of invalidated title77

127Occupiers liability78

127AAuthorities not personal property78

Part 8Compensation79

128Consent of, or compensation agreement with, owner etc. needed before operation on private land starts79

129What compensation is payable forprivate/native title land79

130Limit on total amount of compensation81

131Compensation not payable for petroleum81

132What compensation is payable forCrown land82

133Time limit on compensation claims83

134Determination of disputesprivate/native title land84

135Determination of disputesCrown land85

136Native Title Act rights prevail86

Part 9Consent/notice required before operations allowed on land87

Division 1Wilderness Crown land87

137Petroleum operations on wilderness land barred87

Division 2Operations requiring prior consent87

138Consent of Minister needed to carry out petroleum operations on any land87

139Petroleum operations on restricted Crown land88

140Petroleum operations on water authority land88

141Petroleum operations on highways, roads etc.89

142Provisions applying to consents89

143Right to seek review of refusal to give consent89

Division 3Operations requiring notice90

144Operations on unrestricted Crown land90

145Notice to be given before operation carried out on any land90

Division 4Other matters91

146Areas of aboriginal significance91

Division 5Statement of pre-operation requirements91

147Requirements to be complied with before petroleum operation carried out91

Part 10Royalties and rent94

148Application of this Part94

149Liability for, and rate of, royalty94

150Rate of royalty94

151Meaning of well-head94

152How value to be determined95

153How quantity to be determined95

154When royalty must be paid96

155Circumstances in which royalty is not payable96

156Minister may vary royalty97

157Minister may increase royalty rate to 10%97

158Royalty payable if excess petroleum recovered from reservoir97

159Penalty for late payment98

160Rent payable in relation to Crown land98

Part 11Other obligations on the holders of authorities100

Division 1Conduct of operations etc.100

161Operation plan to be prepared100

162Plan must be observed in carrying out operation101

163Minister may permit variation of operation plan101

164Operation to be conducted in proper manner101

165Other specific obligations concerning conduct of operations101

166Maintenance etc. of property102

167Authority holder must not interfere with other rights103

168Equipment must be removed once authority ceases103

169Minister may remove equipment104

170Rehabilitation104

171Insurance must be held104

Division 2Rehabilitation bond105

172Definition of rehabilitation bond105

173Requirement to take out rehabilitation bond105

174Minister may require increased rehabilitation bond105

175Minister may carry out rehabilitation106

176Return of bond if rehabilitation satisfactory106

Division 3Information to be given to the Minister107

177Minister must be told if petroleum discovered107

178Minister may require certain information if petroleum discovered107

179Authority holder must provide information to Minister108

180Minister may require position of wells etc. to be surveyed108

181Minister may require person to provide information on petroleum operation109

182False information not to be given110

Part 12Release of information obtained or given under this Act111

183Meaning of release and information111

184Meaning of interpretive information111

185Meaning of information collection date111

186Information that is not to be released112

187Information about applications that may be released112

188Release of information about area that is no longer an authority area113

189Release of factual information concerning licence areas113

190Release of factual information concerning other authority areas113

191Restriction on release of information collected so that it could be sold114

192Earlier release of information if consent given114

193Release of interpretive information relating to current authorities115

194Procedure to be followed before interpretive information is released115

195Right to seek review of disputed release decision116

196Minister may give information etc. to other Ministers117

197Restriction on obtaining information to meet work program obligation118

Part 13Enforcement119

Division 1Inspections119

198Authorisation of inspectors119

199Monitoring compliance with this Act119

200Emergencies120

201Offence-related searches and seizures121

202Occupier to be given copy of consent122

203Search warrant122

204Announcement before entry123

205Copy of warrant to be given to occupier124

206Receipt must be given for any thing seized124

207Copies of certain seized things to be given124

208Use of equipment to examine or process things125

209Use or seizure of electronic equipment at premises126

210Compensation for damage127

211Return of seized things127

212Magistrates' Court may extend period128

213Power of inspector to require information or documents128

214Protection against self-incrimination129

215Offence to obstruct inspector129

Division 2Improvement and prohibition notices129

216Improvement notice129

217Prohibition notice130

218Minister may obtain enforcement order131

219Form of notices131

220Right to review132

221Defences to charge of failing to comply with a notice132

222Minister may remedy failure to comply with improvement notice133

Division 3Offences concerning corporations etc.133

223Increased maximum fine for corporations133

224Corporation deemed to have the knowledge of its officers133

225Certain offences by corporations may also be offences by officers134

226Offences by partners134

227Offences by joint venturers134

228Offences by employees and agents135

229Default penalties135

Part 14Administrative matters136

Division 1Petroleum register136

230Establishment of register136

231Need for registration136

232Other documents to be registered136

233Entries in register on devolution of title136

234Registration137

235Effect of registration138

236Inspection of register and documents138

237Minister's certificates138

238Minister may make corrections to register138

239Right to review of register entries139

240Offences relating to the register139

Division 2Other administrative matters140

241Minister may require further information140

242Form of documents140

243Pecuniary interest statement140

244Department surveys140

245Delegation141

246Applications not to be processed unless fee paid141

Part 15Miscellaneous matters142

247Officials must not disclose information142

248Fees and penalties debts due to the State142

249Minister may vary geodetic system143

250Codes of practice143

251Use of codes of practice in proceedings145

251AState liability145

251BMinister may pay for surrender of authority147

Part 16Regulations148

252Regulations148

Part 17Consequential, savings and transitional provisions152

253Repeal of former Act152

254Effect of repeal on existing permits152

255Effect of repeal on existing leases153

256Release of information provided under the Petroleum Act1958154

Endnotes156

1General information156

2Table of Amendments158

3Amendments Not in Operation161

4Explanatory details162

SectionPage

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Version No. 024

Petroleum Act1998

No. 96 of 1998

Version incorporating amendments as at16 March 2017

1

The Parliament of Victoria enacts as follows:

Part 1Preliminary matters

1Purpose

The purpose of this Act is to regulate petroleum exploration and production in Victoria.

2Commencement

(1)This Part comes into operation on the day on which this Act receives the Royal Assent.

(2)Subject to subsection (3), the remaining provisions of this Act come into operation on a day or days to be proclaimed.

(3)If a provision referred to in subsection (2) does not come into operation before 1 December 1999, it comes into operation on that day.

3Objectives

(1)The objectives of this Act are to encourage the exploration for petroleum in Victoria and to promote petroleum production for the benefit of all Victorians by providing

(a)an orderly, fair and competitive system for granting authorities enabling petroleum exploration and production; and

(b)clear and effective administrative frameworks for organising petroleum development activities; and

(c)fiscal regimes that offer petroleum explorers a fair return while benefiting all Victorians; and

(d)easy and effective access to information on Victoria's petroleum geology.

(2)In encouraging petroleum exploration and production, this Act seeks to have regard to economic, social and environmental interests by ensuring

S.3(2)(a) amendedby No. 55/2010 s.57(1).

(a)the efficient exploration for, and production of, petroleum; and

S.3(2)(b) amendedby No. 55/2010 s.57(2).

(b)that the impacts on individuals, public safety, public amenity and the environment as a result of petroleum activities will be minimised as far as is practicable; and

(c)that land affected by petroleum activities is rehabilitated; and

(d)that there will be just compensation for access to, and the use of, land; and

(e)that petroleum explorers and producers will comply with all authority conditions that apply to them.

4General definitions

In this Act

S. 4 def. of authority amendedby No.57/2009 s.35(b).

authority means an exploration permit, a retention lease, a production licence, special access authorisation or a special drilling authorisation;

Crown land means land that is, or that is by any Act deemed to be, unalienated land of the Crown, and includes

(a)land of the Crown that is reserved permanently or temporarily by or under any Act; and

(b)land of the Crown occupied by a person under a lease, licence or other right under this or any other Act

but does not include

(c)native title land that is not also wilderness Crown land; or

(d)land that is subject to a licence granted under Part 3A of the Victorian Plantations Corporation Act 1993;

S. 4 def. of current authority holder insertedby No.57/2009 s.35(a).

current authority holder means a holder of a primary authorisation;

S. 4 def. of Department amendedby Nos56/2003 s.11(Sch. item14), 70/2013 s.4(Sch.2 item34).

Department means the Department of State Development, Business and Innovation;

S. 4 def. of drilling authorisation area insertedby No.57/2009 s.35(a).

drilling authorisation area means the area specified in a special drilling authorisation granted under Part 6A;

gathering line has the meaning set out in section82;

S.4 def. of good oil-field practice repealedby No.55/2010 s.58.

*****

S.4 def. of hydraulic fracturing insertedby No.8/2017 s.8.

hydraulic fracturing means the injection of a substance or substances into a bore under pressure for the purposes of stimulating a geological formation;

improvement notice means a notice issued under section 216;

inspector means a person authorised by the Minister under section 198 to act as an inspector;

Native Title Act means the Native Title Act 1993 of the Commonwealth;

native title land means land in which native title (within the meaning of the Native Title Act) may exist;

S.4 def.of offshore area insertedby No.64/2012 s.46(1).

offshore area has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2010;

S.4 def.of offshore petroleum exploration permit insertedby No.64/2012 s.46(1).

offshore petroleum exploration permit means a petroleum exploration permit within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2010;

S.4 def.of offshore petroleum production licence insertedby No.64/2012 s.46(1).

offshore petroleum production licence means a petroleum production licence within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2010;

S.4 def.of offshore petroleum retention lease insertedby No.64/2012 s.46(1).

offshore petroleum retention lease means a petroleum retention lease within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2010;

owner means

(a)in relation to land that is subject to a licence granted under Part 3A of the Victorian Plantations Corporation Act 1993, the licensee of that land under that Part;

(b)in relation to native title land, the native title holder (within the meaning of the Native Title Act) of the land;

parks Crown land means any land that is a national, State or other park under the National Parks Act 1975;

petroleum has the meaning set out in section 6;

petroleum exploration has the meaning set out in section 7;

petroleum operation means any activity relating to petroleum exploration or to petroleum production;

petroleum pool means a naturally occurring discrete accumulation of petroleum;

petroleum production has the meaning set out in section 8;

petroleum register means the register established under Division 1 of Part 14;

S. 4 def. of primary authorisation insertedby No.57/2009 s.35(a), substitutedby No.64/2012 s.46(2).

primary authorisation means

(a)an exploration permit; or

(b)a retention lease; or

(c)a production licence; or

(d)an offshore petroleum exploration permit; or

(e)an offshore petroleum retention lease; or

(f)an offshore petroleum production licence;

private land means land that is not Crown land or native title land;

prohibition notice means a notice issued under section 217;

S. 4 defs of P(SL)A lease, P(SL)A licence, P(SL)A permit insertedby No.57/2009 s.35(a), repealedby No.64/2012 s.46(3).

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reservoir means an underground natural reservoir that is suitable for the storage of petroleum;

S. 4 def. of restricted Crown land amendedby No. 63/2006 s.61(Sch. item27).

restricted Crown land means any land specified in Schedule 3 to the Mineral Resources (Sustainable Development) Act 1990;

retention period means a period of 60 days after the seizure of a thing under this Act;

Tribunal means the Victorian Civil and Administrative Tribunal;

unit development agreement means an agreement made under Division 9 of Part 5;

unrestricted Crown land means any Crown land other than wilderness Crown land, parks Crown land and restricted Crown land;

vary, in relation to the conditions of an authority, includes adding conditions to, and removing conditions from, the authority;

well means a hole in the sub-soil made by drilling, boring or any other means in connection with a petroleum operation, but does not include a seismic shot hole;

well-head has the meaning set out in section 151;

wilderness Crown land means land that is a reference area under the Reference Areas Act 1978 or that is a wilderness zone or wilderness park under the National Parks Act 1975;

work program has the meaning set out in section97.

5Reference provisions

(1)A reference in this Act to a permit area, a lease area, a licence area, an authorisation area or an authority area is a reference to the area to which the permit, lease, licence, authorisation or authority applies at the relevant time.

(2)A reference in this Act to this Act includes a reference to the regulations.

(3)Without limiting section 37(a) of the Interpretation of Legislation Act 1984, a reference in this Act to a person using a neuter pronoun is not to be taken to indicate that an individual is not included as well as any other person, unless the contrary intention appears.

(4)For the purposes of this Act, a person carries out a petroleum operation by starting, or continuing to carry on, the operation.

6Meaning of petroleum

(1)Petroleum is

(a)any naturally occurring hydrocarbon (whether in a gaseous, liquid or solid state); or

(b)any naturally occurring mixture of hydrocarbons (whether in a gaseous, liquid or solid state); or

(c)any naturally occurring mixture of one or more hydrocarbons (whether in a gaseous, liquid or solid state), and one or more of the following: hydrogen sulphide, nitrogen, helium or carbon dioxide.

(2)For the purposes of this Act

(a)petroleum includes any petroleum as defined by subsection (1)(a), (b) or (c), and any petroleum product specified by the regulations for the purposes of this section, that has been returned to a reservoir in Victoria; but

(b)petroleum does not include any naturally occurring hydrocarbon, or mixture of hydrocarbons, within a deposit of coal or oil shale.

7Meaning of petroleum exploration

Petroleum exploration is the carrying out of one or more of the following activities for the purpose of finding petroleum or reservoirs

(a)conducting geological, geophysical and geochemical surveys;

(b)making wells;

(c)taking samples for the purposes of chemical or other analysis;

(d)extracting petroleum from land for the purpose of determining whether it will be viable to extract it commercially.

8Meaning of petroleum production

Petroleum production is

(a)the extraction of petroleum from land for the purpose of producing it commercially;

(b)the injection and storage of petroleum in reservoirs for the purpose of later recovering it;

(c)the recovering of petroleum from reservoirs into which the petroleum was previously injected;

(d)any activity incidental to any activity listed in paragraph (a), (b) or (c), including the processing of petroleum and transportation of petroleum within the area in which the petroleum is being produced.

9Act binds the Crown

This Act binds the Crown in right of Victoria and, so far as the legislative power of the Parliament permits, the Crown in all its other capacities.

S. 10 amendedby No. 107/2004 s.183.

10Relationship of this Act to certain other Acts

If this Act makes provision in relation to a matter and provision is also made in relation to that matter by, or under, the Occupational Health and Safety Act 2004 or the Dangerous Goods Act 1985, the provision made by this Act

(a)if not inconsistent with that other provision, must be observed in addition to that other provision; and

(b)if inconsistent with that other provision, is, to the extent of the inconsistency, of no force or effect and that other provision prevails.

Part 2General matters

S.11 amendedby No.10/2010 s.800(Sch.6 item11).

11Application of this Act

This Act applies to all land in Victoria, other than land that is within the area defined as the offshore area in the Offshore Petroleum and Greenhouse Gas Storage Act 2010.

12Minister may exempt land from the application of this Act

(1)Despite section 11, the Minister may, by notice published in the Government Gazette and registered in the petroleum register, exempt any land from the application of some or all of the provisions of this Act.

(2)The Minister may do this

(a)to protect the land for significant environmental reasons; or

(b)to protect significant commercial or economic activity; or

(c)for any other reason the Minister considers to be appropriate.

(3)The Minister may, by notice published in the Government Gazette and registered in the petroleum register, revoke any exemption granted under this section.

13Petroleum is the property of the Crown

The Crown owns all petroleum on or below the surface of any land in Victoria that came to be on or below that surface without human assistance.

14Crown retains Crown land petroleum rights

In conferring any grant, lease, licence or other tenure of any Crown land after the commencement of this section on any person, the Crown retains all rights that it has in relation to any petroleum on or below that land, unless otherwise stated in the document by which the grant, lease, licence or other tenure is conferred.

15Offence to explore for petroleum unless authorised

A person must not carry out any petroleum exploration operation in Victoria except

(a)under, and in accordance with, an authority; or

(b)as otherwise permitted by this Act.

Penalty: 240 penalty units.

Default penalty: 10 penalty units.

16Offence to produce petroleum unless authorised

A person must not carry out any petroleum production operation in Victoria except

(a)under, and in accordance with, a production licence; or

(b)as otherwise permitted by this Act.

Penalty: 240 penalty units.

Default penalty: 10 penalty units.

S.16A insertedby No.8/2017 s.9.

16AOffence to carry out hydraulic fracturing

A person must not carry out any hydraulic fracturing in the course of carrying out any petroleum operation.

Penalty:200 penalty units.

Default penalty:

In the case of a corporation, 20penalty units.

In any other case, 10 penalty units.

17Petroleum becomes the property of the person extracting it

On a person extracting from any land in Victoria in accordance with this Act any petroleum that came to be on or below the surface of the land without human assistance, the person becomes the owner of that petroleum.

S.17A insertedby No.8/2017 s.10.

17AMoratorium on petroleum exploration and petroleum production

(1)Subject to this section, despite anything to the contrary in this Act or any condition of arelevant authority, the carrying out of anypetroleum exploration or petroleum production during the moratorium period is not authorised under that authority.

(2)Subsection (1) does not affect any requirement or obligation imposed on the holder of a relevant authority by or under this Act or under a condition of the authority during the moratorium period.

(3)In addition, subsection (1) does not affect

(a)the authorisation of petroleum exploration or petroleum production during the moratorium period by the following production licences

(i)Production Licence 1 registered in the petroleum register on 1 March 1985;

(ii)Production Licence 2 registered in the petroleum register on 31December 1990;

(iii)Production Licence 3 registered in the petroleum register on 10 May 1993;

(iv)Production Licence 11 registered in the petroleum register on 14May 2002;

(v)Production Licence 13 registered in the petroleum register on 7February 2006; or

(b)the authorisation under a production licence of petroleum storage in a reservoir that is carried out in accordance with a storage development plan approved under Division 7 of Part5 that applies to the production licence.

(4)Despite anything to the contrary in this Act, the Minister must not grant a relevant authority during the moratorium period.

(5)In this section

moratorium period means the period beginning on the day on which the Resources Legislation Amendment (Fracking Ban) Act 2017 comes into operation and ending on 30 June 2020;

relevant authority means an exploration permit, a retention lease or a production licence.

Part 3Exploration permitsDivision 1Rights conferred by permit

18Rights conferred by permit

An exploration permit authorises the holder of the permit, subject to and in accordance with the conditions of the permit

(a)to carry out petroleum exploration in the permit area; and

(b)to do any thing in that area that is necessary for, or incidental to, that purpose.

Division 2Process for granting permits

19Minister may invite tender applications for exploration permits

(1)The Minister may invite applications for an exploration permit to explore a specified area.

(2)The invitation must specify

(a)the chief factors that will be considered by the Minister in assessing applications; and

(b)a date by which applications must be made.

S.19(3) insertedby No.64/2012 s.47.

(3)In subsection (2), chief factors means the chieffactors set out in section 20B(2)(a) and(b) or 21(2)(a) and (b), as the case requires.

20Application for permits

In addition to complying with section 96, an applicant for an exploration permit must submit details of

(a)its relevant technical qualifications and of the relevant technical qualifications of its employees; and

(b)the relevant technical advice available to it; and

(c)the financial resources available to it.

S.20A insertedby No.55/2010 s.59.

20AGrant of exploration permit

The Minister may grant or refuse to grant an exploration permit.

S.20B insertedby No.64/2012 s.48.

20BChief factors to be considered when there is only one application

(1)This section applies if only one application for an exploration permit is received in respect of an area.

(2)In deciding whether to grant or refuse to grant an exploration permit, the chief factors the Minister must take into account are

(a)the merits of the work program proposed by the applicant; and

(b)the likelihood that the work program will be carried out.

21Chief factors to be considered in deciding between competing offers

(1)This section applies if more than one application is received in respect of an area and the Minister decides to grant an exploration permit in respect of the area.

(2)In determining which applicant, if any, is to be granted the permit, the chief factors the Minister must take into account are

(a)the respective merits of the work programs proposed by the applicants; and

(b)the likelihood that the work programs will be carried out.

22Notice to be given to applicants

S.22(1) amendedby No.64/2012 s.49(1).

(1)If the Minister decides to grant an exploration permit, she or he must give every unsuccessful applicant (ifany) for the permit written notice of that decision within 14 days after making it.

S.22(2) amendedby No.64/2012 s.49(2).

(2)If the Minister decides not to grant an exploration permit, the Minister must notify every applicant in writing of that decision.

23Minister may make new grant if former grant refused

(1)This section applies if the Minister decides to grant an exploration permit to an applicant but the applicant states in writing that it does not intend to accept the grant.

(2)The Minister may grant the permit to any other applicant for the permit.

(3)This section applies regardless of how many times the Minister has decided to grant the permit.

24Procedure if initial invitation does not result in the granting of a permit

(1)This section applies if

(a)no applications are received in response to an invitation made under section 19; or

(b)the Minister refuses to grant an exploration permit to any applicant who responded to such an invitation; or

(c)no applicant who responded to such an invitation is willing to accept the grant of the exploration permit by the Minister.

(2)The Minister may invite further applications for an exploration permit for the relevant area.

(3)Sections 20, 22 and 23 apply to applications made in response to an invitation made under subsection(2).

(4)If more than one application is received, the Minister must consider the applications in the order in which they were received by the Minister.

S.25 substitutedby No.64/2012 s.50.

25Permit area for exploration permits

(1)In issuing an exploration permit, the Minister must determine the area to which the exploration permit applies in accordance with this section.

(2)The area to which the permit applies must not be more than 12500 square kilometres.

(3)In addition, no part of the area to which the permit applies may be within an area that is already the subject of an exploration permit.

(4)The area that is determined may

(a)be less than that applied for by the applicant;

(b)be an area from which there are parts that are excised;

(c)consist of non-continuous parcels of land.

S.26 amendedby No.64/2012 s.51.

26Term of permit

An exploration permit expires 5years after the day on which it is registered in the petroleum register, unless it is cancelled or surrendered earlier or unless this Act otherwise provides.

27Key objects of work programs

(1)In granting an exploration permit, the Minister must declare in writing that certain specified elements of the work program submitted in relation to the permit are key objects of the work program.

(2)The holder of an exploration permit must ensure that the key objects of the work program are achieved to the maximum extent that is practicable.

(3)On the application of the holder of an exploration permit, the Minister may vary a declaration to remove a key object, substitute a key object or vary the details of a key object.

(4)The Minister may only exercise her or his powers under subsection (3) if she or he is satisfied that there are extraordinary circumstances that justify the variation.

Division 3Renewals

28Renewal of permit

(1)The Minister may renew an exploration permit for a further 5 years from the date of its expiry.

S.28(2) amendedby No.64/2012 s.52.

(2)A renewed exploration permit expires 10years after the day on which the initial permit was registered in the petroleum register, unless it is cancelled or surrendered earlier or unless this Act otherwise provides.

(3)The Minister may only renew an exploration permit once.

29Application for renewal

(1)The holder of an exploration permit may apply to the Minister for the renewal of the permit.

(2)A renewal application must be given to the Minister at least 90 days before the permit is due to expire.

(3)On the payment of any late fee required by the regulations for the purposes of this section, the Minister may also consider any application for renewal that does not comply with subsection (2).

(4)However, the Minister must not consider any application to renew a permit that is made after the permit has expired.

30Other factors to be considered in renewing permits

(1)The Minister must renew an exploration permit if

(a)the holder of the permit applies for the renewal in the form and manner required by the Minister; and

(b)the application is accompanied by the renewal fee set out in the regulations for the purposes of this paragraph; and

(c)the permit holder has complied with the conditions of the permit and all applicable laws; and

(d)the application is accompanied by details of the work program the holder of the permit proposes to undertake if the permit is renewed; and

(e)the Minister is satisfied that the proposed work program is adequate; and

(f)the holder of the permit has nominated in theapplication the area that it wishes to relinquish (unless section 32(4) applies); and

(g)the Minister will not breach section 32(1), (2) or (3) by renewing the permit for the remaining area.

(2)In any other case the Minister may renew a permit if she or he is satisfied that there are special circumstances that justify the renewal of the permit.

31Permit not to be renewed if key objects not achieved

(1)Despite section 30, the Minister must not renew a permit if the key objects of the work program that were to have been conducted under the permit have not been achieved to the maximum extent that is practicable.

(2)Subsection (1) does not apply if the Minister is satisfied that the failure was the result of one or more events that were beyond the control of the holder of the permit.

32Renewed permit area to be reduced

(1)In renewing an exploration permit, the Minister must ensure that the permit area is reduced by at least 50%.

(2)In renewing an exploration permit and reducing the permit area, the Minister must be satisfied that both the area to which the renewed permit will apply and the area to which the permit will no longer apply are of such a nature that it will still be practicable for petroleum exploration to be carried out on them.

(3)In reducing the area to which a renewed exploration permit will apply, the Minister must ensure that the reduced area forms no more than 2continuous parcels of land.

(4)Despite subsection (1), the Minister may issue a renewed exploration permit without reducing the permit area, or without reducing the permit area by at least 50%, if

(a)the Minister is satisfied, on the written application of the holder of the permit

(i)that it was unable to explore a relevant area as a result of one or more events that were beyond its control; or

(ii)that there are exceptional circumstances that justify such a renewal; or

(b)it is necessary to do so to enable the Minister to comply with subsection (3).

33Key objects of work programs

(1)In renewing an exploration permit, the Minister must declare in writing that certain specified elements of the work program submitted in the application for the renewal of the permit are key objects of the work program.

(2)The holder of the permit must ensure that the key objects of the work program are achieved to the maximum extent that is practicable.

(3)On the application of the holder of an exploration permit, the Minister may vary a declaration to remove a key object, substitute a key object or vary the details of a key object.

34Variation of work programs for renewed permits

(1)If an exploration permit is renewed, the holder of the permit may apply to the Minister for permission to vary the work program.

(2)The Minister may allow the holder of the permit to vary its work program if the Minister is satisfied that the variation will improve the work program.

Division 4Ministerial directions if petroleum discovered

35Minister may give directions if petroleum discovered

(1)If the holder of an exploration permit discovers any petroleum in the permit area, the Minister may require the holder of the permit to apply for a retention lease or a production licence in respect of the discovery.

(2)Such a requirement must be made in writing and must allow the holder of the permit at least 90days within which to make the application.

(3)The Minister may only make a requirement under this section if the holder of the permit has extracted petroleum as a result of the discovery.

(4)If the holder of the permit fails to comply with a requirement made under this section, the Minister may cancel the permit.

Part 4Retention leases

36Purpose of a retention lease

A retention lease enables the holder of an exploration permit to retain certain rights to a petroleum discovery that it is not commercially viable to develop under a production licence at the time the lease is granted, but which might become viable to develop within 15 years.

37Rights conferred by lease

A retention lease authorises the holder of the lease, subject to and in accordance with the conditions of the lease

(a)to carry out petroleum exploration in the lease area; and

(b)to do any thing in the lease area that is necessary for, or incidental to, that purpose; and

(c)to retain a right to apply for a production licence in respect of the lease area under Division 2 of Part 5 without complying with any requirement that there might otherwise be under this Act to carry out a work program in respect of the area.

S. 38 amended by No. 25/2008 s.21 (ILA s.39B(1)).

38Right to apply for lease

(1)The holder of an exploration permit may apply to the Minister for the grant of a retention lease in respect of any part of the permit area on which the holder has discovered petroleum.

S. 38(2) inserted by No. 25/2008 s.21.

(2)An application for a retention lease must be made at least 90 days before the applicant's exploration permit is due to expire.

S. 38(3) inserted by No. 25/2008 s.21.

(3)Despite subsection (2), the Minister may on the payment of any late fee required by the regulations consider an application for a retention lease that does not comply with that subsection.

39Details to be supplied with application

In addition to complying with section 96, an applicant for a retention lease must submit details of

(a)the area in respect of which the lease is sought; and

(b)the commercial viability of extracting petroleum from that area at the time the application is made; and

(c)the possible future commercial viability of extracting petroleum from that area.

40Factors determining grant of application

(1)The Minister must grant a retention lease if

(a)the applicant for the lease has provided all the information required by the Minister and has otherwise complied with section 39; and

(b)the applicant has complied with the conditions of its exploration permit and all applicable laws in relation to that permit; and

(c)the Minister is satisfied that the extraction of petroleum from the proposed lease area

(i)was not commercially viable on the day the application for the lease was made; but

(ii)is likely to become commercially viable within the next 15 years.

(2)The Minister may grant a retention lease if

(a)subsections (1)(a) and (c) apply; and

(b)she or he is satisfied that there are special circumstances concerning the failure to comply with the conditions of the exploration permit, or with an applicable law, that justify the granting of the lease.

(3)The Minister must not grant a retention lease in any other circumstances.

41Restrictions on area to which lease applies

(1)In granting a retention lease, the Minister must ensure that the lease area is the minimum area necessary

(a)to cover the maximum extent of the petroleum field; and

(b)to enable future petroleum production and storage in relation to the field and future storage in relation to any reservoir.

(2)Nothing in subsection (1) authorises the Minister to include in the lease area any area that was not within the area to which the lease holder's exploration permit applied.

42Term of lease

(1)A retention lease starts on the day it is registered in the petroleum register.

(2)A retention lease expires on the last day of the period specified by the Minister in the lease as the term of the lease, unless it is cancelled or surrendered earlier or unless this Act otherwise provides.

(3)The Minister may specify that a retention lease is to have a term of up to 15 years.

(4)A retention lease cannot be renewed.

43Procedure if lease not to be granted

(1)The Minister must not refuse to grant a retention lease unless the Minister

(a)has given the applicant for the lease not less than 30 days' written notice of the Minister's intention to refuse to grant the lease; and

(b)has served a copy of the notice on any other people that the Minister considers may have an interest in the refusal; and

(c)has, in the notice

(i)given detailed reasons for the proposed refusal; and

(ii)invited the person who is given the notice to make any submissions it wishes to make by a specified date; and

(d)has considered any submissions made on or before the specified date in response to such an invitation.

44Minister may require review of commercial viability

(1)The Minister may require the holder of a retention lease to re-evaluate the commercial viability of petroleum production in the lease area and to report to the Minister in writing the results of the re-evaluation.

(2)In making such a requirement, the Minister

(a)must make the requirement by giving the holder of the lease written notice of the requirement; and

(b)must allow the holder of the lease at least 90days within which to comply with the requirement; and

(c)cannot require the holder of the lease to make any wells.

(3)The Minister may, on the written application of the holder of a lease, allow the holder of the lease more time within which to comply with a requirement made under this section.

(4)The Minister may not make a requirement under this section if the holder of the lease has already complied with a requirement made under this section on 2 occasions in the 5 years immediately before the making of the requirement.

(5)If the holder of a lease fails to comply with a requirement made under this section, the Minister may cancel the lease.

45Minister may give directions if extraction viable

(1)This section applies if, after receiving a report under section 44, the Minister is of the opinion that the extraction of petroleum from the lease area is commercially viable.

(2)The Minister may require the lease holder to apply for a production licence in respect of the lease area.

(3)Such a requirement must be made in writing and must allow the holder of the lease at least 90 days within which to make the application.

(4)If the holder of the lease fails to comply with a requirement made under this section, the Minister may cancel the lease.

Part 5Production licencesDivision 1Rights conferred by licence

46Rights conferred by licence

A production licence authorises the holder of the licence, subject to and in accordance with the conditions of the licence

(a)to carry out petroleum production in the licence area; and

(b)to carry out petroleum exploration in the licence area; and

(c)to do any thing in the licence area that is necessary for, or incidental to, those purposes.

Division 2Issue of licences to holders of permits or leases

47Right to apply for licence

The holder of an exploration permit or a retention lease may apply to the Minister for the grant of a production licence in respect of any part of the permit or lease area on which the holder has discovered petroleum or a reservoir.

48Details to be supplied with application

In addition to complying with section 96, an applicant for a production licence under this Division must submit details of the area in respect of which the licence is sought.

49Factors determining grant of application

(1)The Minister must grant a production licence if

(a)the applicant for the licence has provided all the information required by the Minister and has otherwise complied with section 48; and

(b)the applicant has complied with the conditions of its exploration permit and its retention lease (if any) and all applicable laws in relation to that permit and lease.

(2)The Minister may grant a production licence if

(a)subsection (1)(a) applies; and

(b)she or he is satisfied that there are special circumstances concerning the failure to comply with the conditions of the exploration permit or retention lease, or with an applicable law, that justify the granting of the licence.

(3)The Minister must not grant a production licence under this Division in any other circumstances.

Division 3Grant of licences by tender

50Minister may invite tender applications

(1)The Minister may invite applications for the grant of a production licence in respect of an area if

(a)in the opinion of the Minister, there is petroleum or a reservoir in the area; and

(b)the area

(i)is not the subject of an exploration permit, a retention lease or a production licence; or

(ii)was the subject of an exploration permit, a retention lease or a production licence that has expired or that has been surrendered or cancelled in respect of that area.

(2)The invitation must specify

(a)the chief factors that will be considered by the Minister in assessing applications; and

(b)a date by which applications must be made.

(3)The invitation may specify

(a)that an applicant must specify the amount that it is willing to pay for the grant of the licence or the royalty regime that it is prepared to accept under the licence; and

(b)the basis on which applications will be primarily decided (for example, work program, cash bid or royalty bid).

51Applications

In addition to complying with section 96, an applicant for a licence offered under this Division

(a)must submit details of

(i)its relevant technical qualifications and of the relevant technical qualifications of its employees; and

(ii)the relevant technical advice available to it; and

(iii)the financial resources available to it; and

(b)must include in the application anything else required in the invitation; and

(c)if the invitation requires applicants to specify a cash bid for the licence, must be accompanied by a deposit of 10% of the amount bid.

52Procedure for deciding between competing bids

(1)The Minister must decide between competing applications on the basis of the chief factors specified in the invitation for the applications.

(2)Nothing in this section requires the Minister to grant an application that, in the opinion of the Minister, is deficient or defective or not in the best interests of the people of Victoria.

53Notice to be given to applicants

(1)If the Minister decides to grant a production licence, she or he must give every unsuccessful applicant for the licence written notice of that decision within 14 days of making it.

(2)If the Minister decides not to grant a production licence to any of the applicants for the licence, she or he must notify all applicants in writing of that decision.

54Refund of deposits

(1)The Minister must refund any deposit paid under section 51(c) by an applicant who is not granted a production licence.

(2)If, in the opinion of the Minister there are exceptional circumstances or the interests of fairness so require, she or he may refund the deposit of an applicant who is granted a licence, but who does not accept that grant.

55Minister may make new grant if former grant refused

(1)This section applies if the Minister decides to grant a production licence under this Division to an applicant but the applicant states in writing that it does not intend to accept the grant.

(2)Subject to section 52, the Minister may grant the licence to any other applicant for the licence.

(3)This section applies regardless of how many times the Minister has decided to grant the licence.

56Extension of time in which to make licence payment

On the written application of a person made within 90 days after receiving notice that it has been granted a production licence, the Minister may extend by up to 90 days the period within which the person may pay a required amount for the licence.

57Minister must not issue licence unless cash bid paid

Subject to section 56, if cash bids were made for a production licence, the Minister must not issue the licence to a person unless it has paid the amount it bid for the licence.

Division 4General provisions

58Restrictions on area to which licence applies

(1)In granting a production licence, the Minister must ensure that the licence area is the minimum area necessary

(a)to cover the maximum extent of the relevant petroleum field or reservoir; and

(b)to enable future petroleum production and storage in relation to the field and future storage in relation to any reservoir.

(2)In the case of licences granted under Division 2, nothing in subsection (1) authorises the Minister to include in the licence area any area that was not within the area to which the licence holder's exploration permit or retention lease applied at the time it applied for the licence.

59Term of licence

A production licence continues in force until it is surrendered or the Minister cancels it in accordance with this Act.

Division 5Directions concerning the rate of extraction or recovery of petroleum

60Direction if petroleum not being extracted/recovered to the Minister's satisfaction

(1)If petroleum is being extracted or recovered in a licence area, the Minister may direct the holder of the licence to take all necessary and practicable steps to reduce the rate at which petroleum is being extracted or recovered in the area to the rate specified by the Minister in the direction.

(2)The Minister may only give a direction if, in the opinion of the Minister, the direction is necessary to ensure that petroleum is extracted or recovered from the licence area at a rate that is consistent with good oilfield practice.

(3)If the Minister gives a direction but is not satisfied with the steps taken or being taken by the holder of the licence, the Minister may direct the holder of the licence to do anything else that the Minister thinks is necessary for, or in relation to, the reduction of the rate at which petroleum is being extracted or recovered in the area.

61Form of direction

Any direction given by the Minister under this Division must be in writing.

62Licence holder must comply with directions

The holder of a production licence must comply with any direction validly given under this Division.

Penalty: 240 penalty units.

Default penalty: 10 penalty units.

Division 6Petroleum production development plan

63Petroleum production development plan

(1)A petroleum production development plan is a plan in relation to a production licence that outlines how petroleum production will be undertaken in the licence area.

(2)A petroleum production development plan must contain the details required by the regulations.

64Development plan to be lodged before production can start

The holder of a production licence must not carry out petroleum production in the licence area unless the Minister has approved its petroleum production development plan for the licence area.

Penalty: 240 penalty units.

Default penalty: 10 penalty units.

65Development plan must be adhered to

The holder of a production licence must ensure that petroleum production in the licence area is carried out in accordance with its petroleum production development plan.

Penalty: 240 penalty units.

Default penalty: 10 penalty units.

66Minister may require variation of development plan

(1)The Minister may require the holder of a production licence to vary the petroleum production development plan that applies to the licence.

(2)The Minister may only do this after consulting with the holder of the licence.

67Minister may permit variation of development plan

On the written application of the holder of a production licence, the Minister may permit the holder of the licence to vary the petroleum production development plan that applies, or is to apply, to the licence.

Division 7Underground storage of petroleum

68Storage development plan

(1)A storage development plan is a plan in relation to a production licence that outlines how petroleum storage in a reservoir in the licence area will be carried out.

(2)A storage development plan must contain the details required by the regulations.

69Storage development plan to be lodged before operations can start

The holder of a production licence must not inject any petroleum into a reservoir in the licence area for the purposes of storage unless the Minister has approved its storage development plan for the licence area.

Penalty: 240 penalty units.

Default penalty: 10 penalty units.

70Storage development plan must be adhered to

The holder of a production licence must ensure that petroleum storage in reservoirs in the licence area is carried out in accordance with its storage development plan.

Penalty: 240 penalty units.

Default penalty: 10 penalty units.

71Minister may require variation of storage development plan

(1)The Minister may require the holder of a production licence to vary any storage development plan that applies to the licence.

(2)The Minister may only do this after consulting with the holder of the licence.

72Minister may permit variation of development plan

On the written application of the holder of a production licence, the Minister may permit the holder of the licence to vary the storage development plan that applies, or is to apply, to the licence.

Division 8Underground storage of petroleum by third party

73Application of this Division

This Division applies if a person wishes to store petroleum in a particular suitable reservoir in a production licence area, but is unable to obtain the agreement of the holder of the licence to do so.

74Application to excise reservoir from a licence area

(1)The person who wishes to store the petroleum may apply to the Minister to excise from the production licence area the land in which the reservoir is situated.

(2)The application must be made in the manner required by the Minister.

75Minister must seek comments from licence holder

(1)On receiving an application, the Minister must give a copy of the application to the holder of the production licence and invite it to make any submissions it wishes to make in relation to the application within the time specified by the Minister.

(2)The Minister must specify a period of at least 28days.

76Restrictions on ability of Minister to grant application

The Minister may only grant an application if the Minister is satisfied

(a)that the holder of the production licence is not using the reservoir and has no present intention to use the reservoir; and

(b)that the excision of the land will not interfere with the operations of the holder of the production licence.

77Minister may refer application to advisory panel

(1)In this section panel means one or more people chosen by the Minister.

(2)At any time after the expiry of the time specified by the Minister under section 75, the Minister may refer an application to a panel for a recommendation concerning the application.

(3)If the Minister refers an application to a panel, she or he

(a)must ensure that any submissions made under section 75 are also referred to the panel; and

(b)must specify by when the panel must make its recommendation; and

(c)may specify the procedure of the panel.

(4)For the purposes of subsection (3)(b), the Minister must not specify a period of more than 28days.

(5)On the application of one or more members of the panel, the Minister may extend the date by when the panel must make its recommendation by up to 28 days from the date specified by the Minister under subsection (3)(b).

(6)The costs of the panel are to be borne by the person who applied for the excision of the land.

78Procedure if application granted

(1)If the Minister grants an application, she or he must

(a)amend the production licence to excise the relevant land from the licence area; and

(b)notify the applicant and the holder of the production licence in writing that the licence has been amended in that way; and

(c)invite applications for the grant of a production licence in relation to the excised land; and

(d)notify the applicant and the holder of the production licence in writing of the invitation.

(2)Division 3 (other than section 50(1)) applies to the grant of a production licence under this section and applies as if a reference in that Division

(a)to an invitation was a reference to an invitation under subsection (1); and

(b)to "this Division" was a reference to this Division.

Division 9Unit development

79Unit development

(1)This section applies if a petroleum pool extends over a number of areas in a way that legally entitles more than one holder of a production licence or other person to carry out operations for the extraction of petroleum from the pool.

(2)The Minister may require the people who are entitled to extract petroleum from the pool to enter into a co-operative arrangement for the extraction of petroleum from the pool for one or more of the following purposes

(a)to extract the petroleum as effectively as possible;

(b)to keep disruptions to the environment to a minimum.

(3)In making such a requirement, the Minister must ensure

(a)that written notice of the requirement is given to each person on whom the requirement is made; and

(b)that the notice specifies by when the requirement must be complied with; and

(c)that the notice specifies how any dispute concerning the terms of the required cooperative arrangement is to be resolved; and

(d)that the notice specifies what action the Minister may take if the requirement is not complied with.

(4)For the purposes of subsection (3)(b), the Minister must allow a period of at least 90 days from the date the notice is given.

80Consultation concerning unit development must take place if part of pool interstate

(1)This section applies if section 79 applies, but part of the petroleum pool is outside Victoria (or the Minister reasonably believes that part of the pool is outside Victoria).

(2)The Minister must not make a requirement under section 79 unless she or he has obtained the approval of any authority or body that is responsible for regulating the extraction of petroleum from that pool outside Victoria.

81Minister may amend licence for unit development

Despite anything to the contrary in this Act, the Minister may amend a production licence (including any condition of the licence)

(a)for the purpose of giving effect to a cooperative arrangement made under section79; or

(b)as a result of a failure of a person to comply with a requirement made under section 79, but only for the purpose of attempting to achieve to the maximum extent that is possible the object that the requirement sought to achieve.

Division 10Gathering lines

S. 82 amendedby No.57/2009 s.36, substitutedby No.55/2010 s.60.

82Meaning of gathering line

A gathering line is a pipeline that is

(a)situated wholly within

(i)a production licence area; or

(ii)a drilling authorisation area; and

(b)used (or intended to be used) or designed to convey petroleum (or a petroleum product)

(i)from one place to another in that area; or

(ii)between a drilling authorisation area and a production licence area.

83Minister may exempt gathering line from Pipelines Act

S. 83(1) amended by No. 61/2005 s.220.

(1)The Minister may exempt a gathering line from the application of the Pipelines Act 2005.

(2)The Minister

(a)may only grant an exemption in writing; and

(b)may require that certain conditions be met before she or he grants the exemption; and

S. 83(2)(c) amended by No. 61/2005 s.220.

(c)may exempt the gathering line wholly from the Pipelines Act 2005 or from specified provisions of that Act; and

(d)may impose conditions that must be complied with to maintain the exemption.

S. 83(3) amended by No. 61/2005 s.220.

(3)The Pipelines Act 2005 does not apply to a gathering line to the extent set out in any exemption granted under this section.

Part 6Special access authorisations

84Special access authorisation

(1)A special access authorisation authorises the person holding it to carry out the petroleum exploration operations specified in the authorisation in the area in respect of which it is granted.

(2)A special access authorisation does not authorise the holder of the authorisation to make a well.

(3)A special access authorisation does not give the holder of the authorisation any rights with respect to any petroleum within the area in respect of which it is granted.

(4)It is not necessary for the holder of a special access authorisation to be the holder of an exploration permit, a retention lease or a production licence.

85Application for authorisation

(1)A person may apply to the Minister for the grant of a special access authorisation in respect of any area.

(2)In addition to complying with section 96, an applicant for a special access authorisation

(a)must describe and precisely identify the area in respect of which the authorisation is sought; and

(b)must describe in detail the petroleum exploration operations that the person seeks to carry out in that area; and

(c)must submit details of

(i)its relevant technical qualifications and of the relevant technical qualifications of its employees; and

(ii)the relevant technical advice available to it; and

(iii)the financial resources available to it.

86General criteria the Minister must consider

(1)In determining whether or not to grant a special access authorisation, the Minister must take into account the geological and geophysical nature of the area in respect of which the application is made, and any discoveries that have been made in the area by any other person.

(2)The Minister must not grant an application for an authorisation unless she or he is satisfied that the applicant

(a)has the technical qualifications (or has employees that have the technical qualifications), has access to the technical advice and has the financial resources that will be necessary to enable the operations proposed in the application to be undertaken; and

(b)has the ability to comply with this Act.

(3)The Minister must not grant an authorisation in respect of an area unless she or he is satisfied that the size of the area is appropriate having regard to the operations proposed in respect of the area by the person applying for the authorisation.

87Criteria that apply to permit, lease and licence areas

(1)This section applies if any part of the area in respect of which a special access authorisation is sought falls within an area that is the subject of an exploration permit, a retention lease or a production licence.

(2)The Minister must not grant an authorisation in respect of that part of the area unless

(a)she or he has taken into account the work program of the holder of the permit, lease or licence; and

(b)she or he is satisfied that the operations proposed to be carried out under the authorisation will not be detrimental to, or unduly interfere with, any current or proposed future operations of the holder of the permit, lease or licence; and

(c)the holder of the permit, lease or licence has consented in writing to the issue of the authorisation in respect of that part of the area.

88Exception to section 87

Despite section 87(2)(c), the Minister may grant a special access authorisation in respect of an area that is the subject of an exploration permit, a retention lease or a production licence without the consent of the holder of the permit, lease or licence if

(a)in the opinion of the Minister, the likely geological information to be gained if the authorisation is granted in respect of that area will be of significant benefit to Victoria; and

(b)the Minister

(i)notifies the holder of the permit, lease or licence in writing that the Minister is proposing to exercise her or his powers under this section, and of the reasons why she or he is proposing to do so; and

(ii)gives the holder 28 days to make any submissions it wishes in relation to the proposal; and

(c)the Minister considers any submissions made in response to the notice and also takes into account any commercial consequences to the holder of the permit, lease or licence that may be likely if the authorisation is granted.

89Minister may vary area to which authorisation applies

In granting a special access authorisation, the Minister may vary in any way she or he considers appropriate the size or the boundaries of the area in respect of which the authorisation was sought.

90Authorisation does not give exclusive rights

(1)The Minister may grant a special access authorisation in respect of an area, or any part of an area, that is already the subject of another special access authorisation.

(2)The Minister may grant an exploration permit, a retention lease or a production licence in respect of an area, or any part of an area, that is already the subject of a special access authorisation.

91Term of authorisation

(1)A special access authorisation continues in force for the period specified on the authorisation by the Minister, unless it is cancelled or surrendered earlier or unless this Act otherwise provides.

(2)The Minister may specify a period of up to 1 year on the authorisation.

92Extension of term of authorisation

(1)On the application of the holder of a special access authorisation, the Minister may extend the period for which the authorisation remains in force by up to 1 year.

(2)The Minister may only grant such an extension once in relation to an authorisation.

93Permit, lease or licence holder not liable for actions of authorisation holder

(1)This section applies if any part of the area in respect of which a special access authorisation is granted falls within an area that is the subject of an exploration permit, a retention lease or a production licence.

(2)The holder of the permit, lease or licence is not liable in any way for any thing that is done or not done by the holder of the authorisation.

(3)Subsection (2) applies even if the holder of the permit, lease or licence consented to the granting of the authorisation in respect of the permit, lease or licence area.

94Authorisation holder must give data to the Minister

(1)The holder of a special access authorisation must give a copy of all factual information obtained as a result of operations carried out under the authorisation to the Minister within 30 days of the information being obtained.

Penalty: 60 penalty units.

(2)A reference to factual information in this section includes any report compiled on the basis of information obtained under the authorisation.

95Authorisation holder must give data to permit, lease or licence holder

(1)This section applies if any part of a special access authorisation area falls within an area that is the subject of an exploration permit, a retention lease or a production licence.

(2)The holder of the authorisation must give a copy of any factual information obtained as a result of operations carried out under the authorisation in that part of the area to the holder of the permit, lease or licence within 30 days after completing in that part of the area the operations from which the information was obtained.

(3)If there is an agreement between the holder of the authorisation and the holder of the permit, lease or licence in relation to the supply of the information, that agreement prevails over anything to the contrary in this section.

(4)A person must not impose any conditions on the supply of information under this section.

(5)A person must comply with any obligation imposed on it by this section.

Penalty: 60 penalty units.

Pt 6A (Heading and ss 95A95K) insertedby No.57/2009 s.37.

Part 6ASpecial drilling authorisations

S. 95A insertedby No.57/2009 s.37.

95ASpecial drilling authorisation

(1)A special drilling authorisation authorises a current authority holder to

S.95A(1)(a) amendedby No.64/2012 s.53(1).

(a)in the case of the holder of an exploration permit, retention lease, production licence, offshore petroleum exploration permit, offshore petroleum production licence or an offshore petroleum retention lease

(i)carry out petroleum exploration operations in the drilling authorisation area; and

(ii)do anything in the drilling authorisation area that is necessary for the purposes of subparagraph(i);

S.95A(1)(b) amendedby No.64/2012 s.53(2).

(b)in the case of a holder of a production licence or an offshore petroleum production licence

(i)carry out petroleum production in the area specified in the drilling authorisation area; and

(ii)do anything in the drilling authorisation area that is necessary for the purposes of subparagraph(i).

(2)A special drilling authorisation does not give a current authority holder any rights in respect of resources in the drilling authorisation area.

S. 95B insertedby No.57/2009 s.37.

95BApplication for special drilling authorisation

(1)A current authority holder may apply to the Minister for the grant of a special drilling authorisation in respect of an area (other than an area to which the Petroleum (Submerged Lands) Act 1982 applies) adjacent to the area set out in a primary authorisation held by the holder.

(2)In addition to complying with section 96, an applicant for a special drilling authorisation must

(a)describe and precisely identify the area in respect of which the authorisation is sought; and

(b)describe in detail the operations that the person seeks to carry out in that area; and

(c)submit details of

(i)its relevant technical qualifications and of the relevant technical qualifications of its employees; and

(ii)the relevant technical advice available to it; and

(iii)the financial resources available to it.

S. 95C insertedby No.57/2009 s.37.

95CGeneral criteria the Minister must consider

(1)The Minister must not grant an application for an authorisation unless the Minister is satisfied that the applicant holds a primary authorisation in respect of an area that is adjacent to the proposed drilling authorisation area.

(2)The Minister must not grant an authorisation in respect of an area unless the Minister is satisfied that the size of the area is appropriate having regard to the operations proposed in respect of the area by the person applying for the authorisation.

S. 95D insertedby No.57/2009 s.37.

95DCriteria that apply to permit, lease and licence areas

(1)This section applies if any part of the area in respect of which a special drilling authorisation is sought falls within an area that is the subject of an exploration permit, a retention lease or a production licence held by a current authority holder who is not the applicant.

(2)The Minister must not grant an authorisation in respect of that part of the area unless that current authority holder has consented in writing to the issue of the authorisation in respect of that part of the area.

S. 95E insertedby No.57/2009 s.37.

95EException to section 95D

Despite section 95D(2), the Minister may grant a special drilling authorisation in respect of an area that is the subject of a primary authorisation held by a current authority holder who is not the applicant without the consent of that holder if

(a)the Minister

(i)notifies that holder in writing that the Minister is proposing to exercise the Minister's powers under this section, and of the reasons why the Minister is proposing to do so; and

(ii)gives that holder 28 days to make any submissions it wishes in relation to the proposal; and

(b)the Minister considers any submissions made in response to the notice and also takes into account any commercial consequences to that holder that may be likely if the authorisation is granted.

S. 95F insertedby No.57/2009 s.37.

95FMinister may vary area to which authorisation applies

In granting a special drilling authorisation, the Minister may vary in any way the Minister considers appropriate the size or the boundaries of the area in respect of which the authorisation was sought.

S. 95G insertedby No.57/2009 s.37.

95GAuthorisation does not give exclusive rights

(1)The Minister may grant a special drilling authorisation in respect of an area, or any part of an area, that is already the subject of another special drilling authorisation.

(2)The Minister must not grant a special drilling authorisation in respect of an area, or any part of an area, that is already the subject of another special drilling authorisation unless

(a)the Minister has taken into account the work program of the current holder of the special drilling authorisation; and

(b)the Minister is satisfied that the operations proposed to be carried out under the authorisation will not be detrimental to, or unduly interfere with, any current or proposed future operations of the current holder of the special drilling authorisation; and

(c)the current holder of the special drilling authorisation has consented in writing to the issue of another special drilling authorisation in respect of that part of the area.

(3)The Minister may grant an exploration permit, a retention lease or a production licence in respect of an area, or any part of an area, that is already the subject of a special drilling authorisation.

S. 95H insertedby No.57/2009 s.37.

95HTerm of authorisation

A special drilling authorisation continues in force for the period specified in the authorisation by the Minister

(a)until it is cancelled by the Minister; or

(b)until it is surrendered; or

(c)until a primary authorisation in respect of or adjacent to the drilling authorisation area specified in the authorisation expires or is surrendered, cancelled or terminated; or

(d)unless this Act otherwise provides.

S. 95I insertedby No.57/2009 s.37.

95IExisting permit, lease or licence holder not liable for actions of authorisation holder

(1)This section applies if any part of the drilling authorisation area falls within an area that is the subject of a primary authorisation held by a current authority holder that is not the holder of a special drilling authorisation.

(2)The current authority holder is not liable in any way for any thing that is done or not done by the holder of the special drilling authorisation.

(3)Subsection (2) applies even if the current authority holder consented to the granting of the special drilling authorisation in respect of the drilling authorisation area.

S. 95J insertedby No.57/2009 s.37.

95JAuthorisation holder must give data to the Minister

(1)The holder of a special drilling authorisation must give a copy of all factual information obtained as a result of operations carried out under the authorisation to the Minister within 30days of the information being obtained.

Penalty: 60 penalty units.

(2)A reference to factual information in this section includes any report compiled on the basis of information obtained under the authorisation.

S. 95K insertedby No.57/2009 s.37.

95KAuthorisation holder must give data to permit, lease or licence holder

(1)This section applies if any part of a special drilling authorisation area falls within an area that is the subject of an exploration permit, a retention lease or a production licence held by a current authority holder who is not the holder of the special drilling authorisation.

S.95K(2) amendedby No.64/2012 s.54.

(2)The holder of the special drilling authorisation must give a copy of any factual information obtained as a result of operations carried out under the authorisation in that part of the area to the current authority holder within 30days after completing in that part of the area the operations from which the information was obtained.

(3)If there is an agreement between the holder of the authorisation and the current authority holder in relation to the supply of the information, that agreement prevails over anything to the contrary in this section.

(4)A person must not impose any conditions on the supply of information under this section.

(5)A person must comply with any obligation imposed on it by this section.

Penalty: 60 penalty units.

Part 7Provisions applying to authorities generallyDivision 1Applications

96Application for authorities

(1)An applicant for an authority

(a)must apply for the authority in the manner required by the Minister; and

(b)must submit a proposed work program and details of how much it intends to spend on each part of that program; and

(c)must submit details of any matter required by the Minister to enable the Minister to assess the application; and

(d)must submit evidence of its ability to comply with this Act; and

(e)may set out other matters that it wishes the Minister to consider.

(2)In the case of an applicant for a retention lease who does not intend to carry out any petroleum operations under the lease, it is sufficient compliance with subsection (1)(b) if the applicant submits a document declaring that intention.

97Work programs

A work program in relation to an authority is a document

(a)that outlines the work that it is intended to do under the authority; and

(b)that outlines how the work is to be structured and the intended extent of the work; and

(c)that sets out proposed timelines for the various phases of the work; and

(d)that is in the form required by the regulations; and

(e)that contains any other details required by the regulations.

98Applications are not transferable

An application for an authority is not transferable.

99Existing permits and leases continue until renewal applications etc. decided

(1)This section applies if

(a)an application is made for

(i)the renewal of an exploration permit; or

(ii)a retention lease in respect of an area held under an exploration permit; or

(iii)a production licence in respect of an area held under a retention lease or an exploration permit; and

(b)the application has not been determined at the time the original permit or lease is due to expire.

(2)The original permit or lease continues in force until the first of these events occurs

(a)the Minister gives the applicant a written notice stating that she or he refuses to grant the application; or

(b)if the application is granted, the lease, licence or new permit takes effect; or

(c)the application is withdrawn or lapses.

(3)If the application is not made in respect of exactly the same area to which the original permit or lease applies, subsection (2) only applies to the area that is common to the original permit or lease and the area in respect of which the application is made.

Division 2Conditions

100Conditions that may apply to authorities

(1)The Minister may specify that an authority to be granted is to be subject to any conditions that she or he considers to be appropriate.

(2)The Minister may also specify that a person must comply with any conditions that the Minister considers to be appropriate before the Minister will issue an authority to the person.

(3)Without limiting the conditions the Minister may specify under this section, the Minister may specify conditions

(a)relating to the operations that are to be carried out under the authority;

(b)requiring the expenditure of a minimum amount of money